In January 2012, the Connecticut Condo Owners Coalition (CCOC) conducted an online survey of hundreds of Connecticut condo owners to obtain their views on the state of condo governance in their community associations and the effectiveness of existing condo laws. There were multiple choice questions, as well as areas for respondents to further explain their views.
Over 300 condo owners statewide, both CCOC members and non-members, responded to the survey. The CCOC members who responded reside in 170 homeowner associations in 78 towns and cities across our state. When the respondents’ data is extrapolated, this sampling of condo owners represents the view of thousands of unit owners who are either afraid to speak up or in many cases, have given up voicing their concerns because they get little assistance from state agencies. CCOC heard from hundreds who want to see improvement in condo governance and enforcement of state laws.
Harvard Business School researcher Peter Blackshaw, MBA '95, who co-developed PlanetFeedback.com, a website where consumers can complain, compliment, question, suggest, and view ratings on different companies, stated, "We know from research that only 1 consumer in 25 will take the time to write or call to complain or compliment a company. Those other 24 opportunities are going to waste." (http://hbswk.hbs.edu/archive/2076.html).
Furthermore, according to studies done by the TARP Worldwide, one of the world’s premier customer experience agencies, for every irritated customer who complains, 26 do not, even though they have grievances. That means that if a company receives 10 customer complaints, there are probably 260 customers out there who have complaints but don’t voice them…at least not to the company. The reality is you probably don’t know how many dissatisfied customers you have because many dissatisfied customers do not complain (http://www.rctaylor.com/Images/The_Price_of_a_Dissatisified_Customer.pdf).
Therefore, CCOC concludes that it is likely that approximately 7,700 unit owners or more in Connecticut feel the same as the few hundred survey respondents, but did not speak up. This is likely the tip of the iceberg.
"The Connecticut legislature needs to recognize that community association boards are volunteers, that they are elected from among unit owners, so it is imperative to set up an enforcement regimen that recognizes you're dealing with novices, not MBA’'s. I feel Connecticut can make education the basis of a three-strikes-and-you're-out policy. First, it sends letters to boards advising them of their errors. If boards commit the same violations twice within one year, they get warning letters from DCP. The third strike is a fine from DCP. We need to first close the loopholes in existing condo laws and make laws enforceable," stated Linda Palermo, a concerned condo owner from Stratford.
The following represents a qualitative portion of the survey as indicated by the survey respondents:
97% of owners responded that they would you like to see the Department of Consumer Protection publish a Rights and Responsibilities pamphlet with regard to condo living and have it published on the DCP website. This could address new condo owners, existing condo owners, as well as board member and property manager responsibilities.
94% of respondents would like governing documents, including the association’s declaration, bylaws, rules, third-party contracts in effect, and last annual report filed with the Secretary of State, provided to unit owners.
94% of owners responded that associations do no presently distribute list of service requests made by owners to owners at meetings, by mail, or online.
93% of owners would like records of the minutes and votes at all board, committee, and owner meetings, decisions on unit owners’ architectural and design applications, and all ballots and proxies going back one year to unit owners made available to them online.
93% of home owner associations do not have an internal audit committee.
92% of unit owners feel the Department of Consumer Protection be given some jurisdiction to address condo owner issues, besides property manager issues.
92% of respondents feel property managers should be state licensed with ongoing continuing education, and fines and penalties for those found guilty of misconduct.
91% of respondents feel condo owner complaints to the state agencies be logged and published on their websites for greater transparency and awareness of issues
90% of homeowners feel a state agency should distribute a condo owner bill of rights to all associations, who shall present it to their unit owners
90% of respondents favor the establishment of an Office of Condominium Ombudsman
89% of homeowners who responded feel Associations should segregate funds so there is visibility to funds available for special projects (called fund accounting). This goes along with 88% of respondents feeling they would you like to see the operating fund, reserve fund, and any special projects be kept segregated and each reported separately monthly.
88% feel the State of Connecticut be required to enforce existing condo laws.
88% feel more detailed financial records, including all expenditures and receipts, budget and reserve funds, assessment delinquencies and collection actions, the last three years of financial statements, tax returns, and the checkbook register should be available upon request of unit owners.
86% reported that their associations do not annually provide unit owners with a copy of the association's master insurance policy and a statement of homeowner liability.
86% of owners indicated board does not solicit feedback from owners on matters affecting them.
85% would like contact information such as the names and addresses of all
unit owners, board members, and property managers, as well as ownership interest be provided to owners annually, semi-annually or as needed due to turnover.
85% of associations conduct boards conduct meetings without using Robert’s Rules of Order.”
85% of homeowners feel when a vote is to be called the association should be mandated to mail absentee ballots, along with meeting notices, to all unit owners.
84% of respondents would like to see good communications within their associations.
84% reported that their associations do not give unit owners the opportunity to meet with the master policy insurance agent at least once per year.
84% of owners feel their board of directors treat owners unfairly and unequally.
84% of associations have not shared with its members a list of Board member rights and responsibilities.
84% feel there should be state condo law establishing mandatory competitive bidding procedures, requiring a minimum of three qualified bids, as well as owner approval, for all projects $5,000 or higher.
84% feel the Attorney General’s Office should investigate allegations of illegal association activity, authorizing the Secretary of State to withhold association incorporation until such investigation is complete.
84% feel owners should be given some copies of documents and some inspection time free of charge.
84% of associations do not notify unit owners that by state law it may conduct meetings by teleconferencing or video conferencing.
83% of homeowners feel the legislature should mandate that all home owner associations hold at least one condo law education session per year, which shall be open to all unit owners.
81% of respondents feel property managers treat owners unfairly and unequally.
80% of homeowners report that the process of making an insurance claim against the association is not communicated to owners.
80% of homeowner associations hold annual elections.
80% of unit owners feel their association leadership does not promptly reply to owner inquiries
80% of respondents are either very dissatisfied or somewhat dissatisfied with the performance of their board of directors, while 17% are very satisfied or somewhat satisfied with the performance of their board of directors.
79% of respondents report that all unit owners do not have the right to attend and speak freely at all association meetings.
79% of respondents presently do not see their current financial statements each month.
79% of unit owners feel there should be a state mandated election procedure for all condo associations to follow.
79% of respondents feel the Connecticut Commission on Human Rights and Opportunities be given jurisdiction over matters involving elderly and disabled citizens who report matters involving condo or property manager misconduct.
79% feel owners be permitted by state law to speak at the beginning of board meetings for up 10 minutes each.
78% would like to see the board encourage owner participation on committees.
78% support mandatory Alternative Dispute Resolution and a standard set of rules established by the legislature.
78% of associations do not use an independent auditor once per year.
77% of those who filed complaints with state agencies or legislators were not happy with the outcome; 66% were not resolved.
75% of those with a property manager indicate that their associations do not share with its members a list of property manager responsibilities (such as what he/she can and cannot do for owners) and would like provided to owners a copy of the property manager's contract.
75% of respondents feel their property managers do not promptly reply to owner inquiries.
75% of respondents feel all meeting minutes should be given to owners in a timely manner, but are not receiving them.
73% of homeowners feel the legislature should grant Municipal Housing Authorities, local health inspectors and local building departments jurisdiction to rule on unresolved condo matters without owners having to go to court.
70% of owners feel the elections process is not handled fairly.
68% of owners feel they are not given adequate time to speak uninterrupted at meetings.
68% of home owners know the difference between the Declaration, Bylaws, and Rules and Regulations.
67% of the time association election or vote ballots and/or proxies are counted by non-neutral parties, such as board members and/or property managers not independent/neutral parties.
64% of respondents indicated they would like to see a state mandated six-year term limit for all association board members.
64% of associations are managed by a property manager and 25% are self-managed.
64% of unit owners feel the financial reports received from their association is not easy to understand.
63% of associations do not send owners notices and keep files in an electronic format for easy owner access.
63% of unit owners feel there should be a mandated municipal condo refuse rebate given to associations who are not eligible to receive municipal refuse collection services.
63% of homeowners are either very dissatisfied or somewhat dissatisfied with the performance of their outside management company, while 16% are very satisfied or somewhat satisfied with the performance of their outside management company.
61% of respondents would like owners to be provided with financial statements at board / annual meetings.
61% of respondents feel that all homeowners associations should operate under the same state laws, eliminating the need for bylaws.
60% of homeowners feel the Secretary of State’s Office should mandate town tax assessors to would provide a list of state condo owners to its office annually.
57% of unit owners feel there is unclear language in the law that results in costly lawsuits for unit owners that should be changed.
56% of respondents indicated that their boards do not give unit owners board, annual, or unit owner special meeting notices and agendas at least 10 days in advance, and make extra copies of all materials to be considered by the Board available to owners at meetings.
53% of associations hold regular open board meetings.
51% of associations have not shared with its members a list of owner rights
and responsibilities.
49% of respondents reported that the nature of their complaint to state agencies consisted of Association/Board member versus owner disputes, 25% property manager versus owner disputes, 4% owner versus owner disputes, and 21% concerns illegal activity.
44% of owners would like the previous year’s minutes presented at annual meetings for owner review/questions.
42% of associations hold regular open meetings to conduct routine business.
Of those who contacted state agencies for assistance, 27% contacted the Attorney General’s Office and 18% contacted the Dept of Consumer Protection, while 9% contacted their legislators, 7% contacted their municipal health department, sand 6% contacted their local municipal building department
Of those who contacted state agencies for assistance, 32% made contact by phone, 28% by email and 25% by letter.
31% of homeowners feel their Board of Directors does not follow their declarations, bylaws, and state laws established to resolve problems when issues are covered by these documents.
29% of respondents initiated a lawsuit or hiring an attorney to attempt to resolve condo disputes. 24% attempted administrative remedies.
28% of unit owners would like the opportunity to vote on new association rules, or changes to existing rules proposed by board members.
13% of unit owners would like to see voting on issues by referendum – that is, without having to have a meeting
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